I Thought The Bailed Out Companies Were Too Big to Fail?
Bank of America, American International Group, Citigroup, General Motors, GMAC, Chrysler and Chrysler Financial all received federal Bailout money under the Troubled Asset Relief Program (TARP) because we were told that if those companies failed, the rest of our economy would fall like dominoes. “Too Big to Fail” were the cries of the President and Congress.
But not any more, I guess. Now Obama’s “Pay Czar”, Ken Feinberg, wants to cut the salaries of all upper management of those companies by 90%. No one getting a 90% pay cut will stay at those companies. Unqualified people will have to try to step in and take control, or maybe government bureaucrats will step in and run the companies. And the companies will fail. All because leftists want to punish wealth and success.
From Fox News here:
White House pay czar Kenneth Feinberg was the driving force behind the move to order steep pay cuts from bailed-out executives, and did not even seek the president’s approval before making his decision.
The Treasury Department is expected to formally announce in the next few days a plan to slash annual salaries by about 90 percent from last year for the 25 highest-paid executives at the seven companies that received the most from the Wall Street bailout. Total compensation for the top executives at the firms would decline, on average, by about 50 percent.
One official told Fox News that Feinberg from the start had the independent authority to work with companies and make such a call. Obama was never required to sign off before final decisions were made.
The pay restrictions for all seven companies will require any executive seeking more than $25,000 in special benefits — things such as country club memberships, private planes and company cars — to get permission for those perks from the government.
You know in Communist countries, the rich were run out of the business too. Then they were jailed and often executed. But this is how you socialize private companies in America. First you cut payment. When they quit, you put them in jail. Then you take over the companies, because as originally stated, they are too big to fail. And now the government is in the banking business.
And the notion that Feinberg is doing this on his own without direction from Obama is an outright lie.
